Issue 2, 2015

It is almost a tradition for analytical papers to state that the high extent of corporate indebtedness (intercompany including) might hinder investments and growth. The thorough review of the existing research, however, does not reveal a reliable and definite proof that the gross non-government debt contracted might put economic performance in danger. Assuming new debt as a rule represents an incentive for economic growth but to a varying extent. Given a low level of indebtedness both developments go in parallel – the rates of indebtedness’ growth (in the way of credits), on the one hand, and the rates of economic growth on the other. Provided a higher (much higher) speed of indebtedness, linked with the self-induced euphoria for accumulating relatively easy profits, economic development lags behind and the convergence of both curves is broken. The contribution of new lending for intensifying economic operations gradually declines until it reaches a point since which any further increase in lending starts hindering economic growth. The author’s position is that non-government indebtedness in Bulgaria has not reached its break-even point, since which it turns into a brake to economic development. Insufficient indebtedness rather is what impedes economic growth. The question is why households and companies refrain from taking on new liabilities which would have stimulated investment and economic development. The investment and consumer restraint of economic players is much more the outcome of an assessment of the conjuncture in the future. The base period presumes a recovery of the economic development, the more so that there is a long way to go to reach the average European level. Despite that investments are slack. There is obviously a need for adopting a much more different style of social and economic management rather than the change in one or another parameter of economic management. It is obligatory to realize the decisive function of macroeconomic institutions. This process of awareness involves a much better quality of education and the growing up of all the population.
JEL: A14; D02; E02

The paper studies the impact of inequality in household incomes on selected key aspects of the social area in the country. Selected aspects include poverty and social exclusion, material privation, family formation, health, keeping the home, crime and subjective feelings of satisfaction and happiness. The impact of inequality is studied in two aspects – the dynamics of the studied processes and the different social groups. It is established that the inequality influences to a smaller degree on the development of the social processes than on the state and differentiation of the different social groups.
JEL: D31; I14; I32

Тhe present paper dwells upon the reforms in taxation of working income in the European Union Member States. The first part considers the main types of tax reliefs towards personal income as well as the indicators for effective tax burden. In the second part the main theoretical views of optimal taxation of income are presented. The next two parts examine the reforms carried out over the last two decades in EU Member States with a focus on the measures aimed at increase of labour supply. The “old” Member States of EU-15 are considered separately from the new Member States from Central and Eastern Europe and the specificities of the personal income taxation in both groups are analyzed.
JEL: H21; H31

Hysteresis of unemployment is a crucial element to understand the nature and characteristic of the labour market in the post-communist economy. However, previous empirical inquiries mainly focused on unemployment hysteresis in the post-communist economies in Europe and there is little systematic analysis on the former communist countries in Asia. To fill this research gap, this paper chooses five Central Asian republics of the former Soviet Union, namely Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan, and examines the unemployment hysteresis in these post-communist economies. For the purpose of empirical analysis, this paper uses several different unit root tests, such as the SURADF test, the Fourier ADF test and the panel Fourier IPS test. The univariate unit root tests indicate that unemployment rate in Kazakhstan, Kyrgyzstan and Tajikistan can be characterised as the stationary process. The panel unit root tests indicates that unemployment rate in the Central Asia can be stationary process. Overall, the current study concludes that unemployment rates in the post-communist economies in Central Asia can be best described as stationary process in line with the natural rate hypothesis.
JEL: E24; C22

The paper displays the cultural profile of Bulgarian management and responds to the gaps in comparative studies by positioning Bulgaria in the cross-cultural space.  The study is based on the survey of Bulgarian managers (2014-2015) per the GLOBE methodology and on culture distance (friction) measures for Bulgaria relative to 57 countries/societal cultures.  It highlights the behavior-tied profile that is low on Uncertainty Avoidance, Performance and Future Orientation, visible Collectivism and high Gender Egalitarianism; and the values-tied profile that is compatible with all-countries average scores with slightly higher indicators of Collectivism, Assertiveness, and Uncertainty Avoidance. This research distinguishes between countries that display cultural proximity to Bulgaria (East European, Latin Europe, Latin American clusters) and those with greater distance (Germanic, Asian Nordic, Middle Eastern clusters). 
JEL: M14; Z10

Management accountant has its own theory. It uses many theories from other disciplines as its methodological theory. They are most often economic, sociological, psychological and other complex theories. Concerning the philosophical base of the research studies – ontology and epistemology – there is duality like in most social sciences: they use approaches of materialism/positivism/ empiricism, as well as those of idealism/constructivism/normativism. Presented are the methods used in management accounting studies. The focus is placed on those applied mostly in the positive/empirical approach, which is dominating in the research studies globally. Unlike in the developed countries, there is no discussion on the raised issues in Bulgaria. The positive approach in studies of the management accountant in Bulgaria is rarely used. A method, theory, database are rarely announced. This paper is the first attempt to systematize the raised theoretical and methodological questions in the Bulgarian context and an opportunity for a beginning of a creative discussion.
JEL: 41